BCBP Stock: This Overlooked Regional Bank Paying 8.2%?
June 19, 2025
It Checks a Lot of the Right Boxes for Income Investors
When investors think about dividend stocks, regional banks are not at the top of the list. But these companies represent a corner of the stock market that shouldn’t be overlooked. It is filled with steady businesses offering high yields, with strong balance sheets and loyal customer bases.
Take BCB Bancorp Inc (NASDAQ:BCBP), for example. This small-cap regional bank doesn’t get much attention from Wall Street or the financial press, but for income investors, it checks a lot of boxes.
At the current price, BCBP stock has a dividend yield of 8.1%. You don’t see this sort of yield in the banking sector often. Just so you know, if you own the biggest banks in the U.S., they a pay fraction of what investors would get holding BCBP stock.
What Does BCB Bancorp Do?
BCB Bancorp is the parent company of BCB Community Bank, a New-Jersey-based regional bank.
Like the majority of the regional banks, BCB Community Bank offers traditional services like checking and savings accounts, residential and commercial mortgages, small business loans, and consumer lending. It also provides online and mobile banking services. (Source: “Profile,” Yahoo! Finance, last accessed June 16, 2025.)
It’s also worth noting that, because BCP Bancorp operates in the New Jersey–New York metro area, one of the most densely populated and economically active regions in the U.S., it has an edge over other regional banks.
What’s Happening with BCBP Stock?
To say the least, BCBP stock has been painful to watch.
Year to date, the stock price has declined about 32%. BCBP is trading below its 50-day and 200-day moving averages, which indicates that the short-term and long-term trends are pointing downwards and investor sentiment is bearish.
Investors are panicking, because they are concerned about BCB Bancorp’s financial performance and balance sheet.
In its first quarter 2025 financial results, the regional bank reported had a net loss of $8.3 million, or $0.51 per diluted share. This is compared to net income in the prior quarter and the same quarter a year ago.
Why such a big loss?
One of BCB Bancorp’s big borrowers is going through financial hardship. As a result, the bank is preparing for the worst. Mind you, this borrower has a loan of $34.2 million that was current as of the first quarter of 2025.
On top of this, the regional bank is seeing some deterioration in its business loans.
BCB Bancorp’s provision for credit losses ballooned to $20.8 million, compared to just $4.2 million. (Source: “BCB Bancorp, Inc. Reports Net Loss of $8.3 Million in First Quarter 2025; Declares Quarterly Cash Dividend of $0.16 Per Share,” BCB Bancorp Inc, April 22, 2025.)
Chart Courtesy of StockCharts.com
Now, one has to wonder if this is an overreaction.
I mean, BCB Bancorp has total deposits of $2.687 billion, and total loans receivable of $2.918 billion. So, the total provision for credit losses (bad debt) is low relative to its loan book.
Even if the one borrower that’s causing problems for the regional bank does default on the loan, it’s not a big percentage of the overall loan book. BCB Bancorp is well capitalized.
BCBP Stock Offers Large, Consistent Dividend
Right now, BCBP stock pays an annual dividend of $0.64 per share, which works out to a yield of roughly 8.2% based on the current price of around $7.77.
For context, most large-cap banks yield between two and four percent. So, for income-focused investors, BCBP’s payout is really something.
Here’s what’s even more impressive: the regional bank has a very strong record of paying its shareholders well. It hasn’t missed a payment since 2008. During the 2008 financial crisis, the 2020 health crisis, and even the regional bank panic of 2023, BCB Bancorp continued rewarding shareholders.
Keep in mind: during these specific periods, several regional banks went out of business, reduced their dividends, or completely slashed them.
Lastly, for BCB Bancorp to say consistent during difficult times says a lot about management’s commitment to treating its shareholders well.
The Lowdown on BCBP Stock
BCB Bancorp may not be a household name, but it offers exactly what income investors are looking for: a high dividend yield and a conservative business model.
BCBP stock yields over 8.2% and has a long history of rewarding shareholders—even during tough times. You won’t find this sort of yield among America’s big banks.
Of course, no investment is without risk, and BCBP stock is no exception. The recent dip in profits and some deterioration on the balance sheet are concerning developments, but management is hard at work and, in the grand scheme of things, it’s not a survival issue. The regional bank remains well-capitalized and also trades at decent valuations.
Lastly, 128 institutional investors own close to 39% of all outstanding BCBP shares. Insiders also own close to 11% of the outstanding shares. (Source: “Holders,” Yahoo! Finance, last accessed June 16, 2025.)
